Variations in Perceptions of Women and Men on Customer Loyalty in the Caribbean (Research Paper Sample)

Gender Differentiation of Customer Loyalty: Variations in Perceptions of Women and Men on Customer Loyalty in the Caribbean
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Chapter One: Introduction
Background of the Research
The loyalty construct has attracted interest due to the rise of relationship marketing that highlights the relevance of creating relationships between organizations and customers. Resource restrictions and fierce competition has led to a paradigm shift to retention of existing customers rather than acquisition of new ones by marketers. What then is customer loyalty? Conventionally, customer loyalty has been conceptualized using three perspectives (Oliver, 1999). Notably, customer loyalty is considered as the customers’ attitudinal tendency and behavioral constancy in purchasing a specific brand, as well as a blend of these two perspectives. Conversely, researchers have raised concerns about the use of the two dimensions to conceptualize loyalty with arguments that it is insufficient for guiding marketing practitioners in the design of loyalty programs (Jones & Taylor, 2007). Consequently, loyalty is perceived as a multidimensional concept covering various issues. According to Melynk et al (2009), loyalty is characterized by a relationship between an entity and an actor with the latter displaying psychological or behavioral allegiance to the former even with the existence of alternative entities (p.4). Jensen and Hansen (2006) noted that loyal consumers are less likely to accept competitors’ offers and demonstrate less price sensitivity. Hur, Park and Kim (2010) stated that customer loyalty is beneficial to business as it facilitates repeat purchases and ongoing patronage by loyal consumers. Therefore, customer loyalty increases an organization’s competitive advantage and revenue. The competition in the markets is requiring companies to initiate efforts aimed at improving customer loyalty to ensure retention of their current consumers. There has been a call for further research to increase understanding and knowledge on the development of customer loyalty (Knox & Walker, 2001). Such research might lead to enhanced approaches for segmentation of customers and differentiated strategies for achieving high customer loyalty. Indeed, some empirical research has suggested that significant differences exist in female and male customer loyalty (Mittal & Kamakura, 2001), which underscores the need for unique approaches to attain loyalty among these consumers. Although the significance of customer loyalty is acknowledged, empirical studies on the nature and existence of gender differences in loyalty using the evolutionary theoretical perspective (Baumeister and Sommer, 1997) are minimal. Therefore, this study will focus on exploring gender differences in customer loyalty in the Caribbean.
Problem Statement
Research has shown vital differences in female and male consumers’ behavior and cognitive processes (Fisher & Dube, 2005). Gender differences have been reported in loyalty, fairness perceptions, customer satisfaction, and perceptions of service quality (Sharma, Chen & Luk, 2012). Such variations are revealed in the extensive adoption of gender as a variable for segmenting consumers. Therefore, female and male customers have differentiated responses to initiatives perceived as enhancing their loyalty. Recent empirical results recognize that customer loyalty among female and male customers is aroused by varied motivations. For instance, Noble and colleagues (2006) discovered that male loyalty is influenced by information acquisition intentions, whereas female loyalty is inspired by motivation for social interaction. In another study, it was demonstrated loyalty among men and women is dissimilar in nature (Melnyk et al., 2009). Specifically, while female consumers show more loyalty to individuals than males, this variation is reversed when loyalty is directed at a group or company. In this case, men are highly loyal than women to a company. Evanschitzky and Wunderlich(2006) indicated that gender influences various phases of loyalty such that women are highly likely to remain loyal even with reduced satisfaction levels, whereas men will switch brands if they become dissatisfied with a service provider. Other researchers found that female customers decide to participate in loyalty programs, they rely more on individual fit of the specific program than males (Kivetz & Simmons, 2003). Such evidence indicates that indeed there are gender differences in how men and women perceive customer loyalty. However, research on the issue of gender differentiation in customer loyalty is yet to be explored in the Caribbean. Consequently, this research seeks to provide empirical evidence for addressing this gap in knowledge by showing whether the gender variations in customer loyalty reported in past literature exist for a sample of male and female customers from the Caribbean.
Aims and Objectives of the Research
This study seeks to obtain deeper understanding of gender differentiation in customer loyalty. Specifically, the research will focus on examining conceptualization of loyalty among male and female customers in the Caribbean. Moreover, this study investigates the utility of employing the theory of relational versus collective interdependence (Baumeister & Sommer, 1997) to explore gender differences in customer loyalty. The following objectives will be fulfilled by this study.
* To confirm the existence of gender differences in customer loyalty
* To explore gender variations in objects of loyalty
* To examine the nature of gender differences in loyalty to companies and individual service providers
* To provide practical recommendations to marketing practitioners to improve marketing strategies for increasing customer loyalty
Research Questions and Hypotheses
* Are there differences in customer loyalty between male and female customers?
* Do women and men differ in objects of loyalty?
* Are men more loyal than women to companies?
* Do women show more loyalty than men to individual service providers?
Research Hypotheses
Based on the research questions stated, the following hypotheses will be tested in this study.
* Alternative Hypothesis 1: There are gender differences in customer loyalty
Null hypothesis 1: Gender differences do not exist in relation to customer loyalty
* Alternative hypothesis 2: Male and female customers differ in objects of loyalty
Null hypothesis 2: There are no differences between male and female customers in objects of loyalty
* Alternative hypothesis 3: Male customers demonstrate more loyalty than women to companies
Null hypothesis 3: Female customers are more loyal than males to companies
* Alternative hypothesis 4: Female customers are more loyal than males to individual service providers
Null hypothesis 4: Male customers are more loyal than females to individual service providers
Significance of the Study
The study contributes to managerial practice and theory on marketing. From a theoretical perspective, the study offers various contributions to consumer loyalty and gender identity. Concerning consumer loyalty, the study provides insight into how females and males perceive consumer loyalty based on competing theories. The study will indicate the existence of gender differentiation in customer loyalty with evidence from the Caribbean. Regarding gender identity, this study will demonstrate that differences in loyalty between female and male customers are due to group versus individual distinction rather than due to the proximity of relationships.
The results of this study are also relevant to marketing practice as they will show gender variations in customer loyalty. Consequently, marketing managers will have evidence required for designing and implementing differentiated programs aimed at improving loyalty among their customers. Particularly, this will assist marketing managers to design effective customer loyalty programs that recognize the differences in how men and women view loyalty to companies.
Nature of Study
This dissertation will focus on uncovering gender differences in customer loyalty in the Caribbean. The study relies on a cross section quantitative research design to test the various hypotheses proposed in this research. A quantitative research methodology will allow the collection of quantitative data from sample male and female respondents using a survey. This shall be followed by employing quantitative data analysis techniques to analyze the data and test the hypotheses. Therefore, a quantitative methodology is viewed as sufficient for meeting the purposes of the research.
Study Assumptions
This dissertation shall be based on specific assumptions that are outlined below.
* The data collection instrument designed by the author shall be adequate in terms of covering all the variables that are under investigation in this research.
* The respondents will provide truthful responses to the statements stated in the survey instrument.
* The research methodology selected will provide robust evidence on the research topic.
Limitations and Delimitations of the Study
The first limitation is that the study will employ a cross section design to measure the variables that makes it impractical to engage in the examination and interpretation of influences in directionality between variables. Second, convenience sampling will be utilized to select the research sample, which raises concerns on the generalization of the results of the study. Thus, interpretation of the study outcomes should consider the nature of the sample. Third, the data for the investigation comes from self-reported opinions in response to the survey instrument. This means that the s...